Credit card debt can be a tricky thing to manage. What starts as a manageable balance can quickly spiral out of control, especially with high interest rates. Unfortunately, this is the reality for nearly half of credit cardholders in the U.S. today. The average American household has racked up significant credit card debt, becoming more expensive if not paid off.
If you’ve been asking yourself, “How much credit card debt do I have compared to others?” you’re not alone. In this blog, we’ll dive into the current state of credit card debt in America, explore how much the average American owes, and discuss strategies to tackle that debt head-on. Whether you have just a few hundred dollars in credit card debt or thousands, we’ll provide helpful tips for getting rid of it for good.
How Much Credit Card Debt Does the Average American Have?
Credit card debt has become a significant financial burden for many Americans and is more complex than ever to manage. According to the Federal Reserve, overall credit card debt would reach $1.115 trillion in 2024, up $129 billion from the previous year. This implies that the average American now owes $6,218 in credit card debt, with many battling to keep up as interest rates hit a record high of 22.63%. This is the highest interest rate in the history of tracking credit card APRs, which dates back to 1994.
Many people rely on credit cards to help them manage their daily costs. Many consumers have turned to credit cards for groceries, childcare, or emergency needs to get by, resulting in record-high balances. The harmful side effect of high interest rates is that these debts accrue quickly, making them even more difficult to repay in the long run.
Credit card debt is a problem that affects Americans of all backgrounds. According to US Census data, 75% of Americans own at least one credit card. While older generations, such as Baby Boomers, are more likely to own a credit card, younger generations are not exempt. Even Gen Zers (aged 18-28) carry credit card balances despite being less likely to own credit cards.
Gender differences complicate matters further. Women earn less on average than males, leaving less money for discretionary costs. As a result, women are more prone to carry credit card debt from month to month. In reality, 52% of women maintain a balance, compared to 44% of males. The reasons behind this frequently include ordinary living expenses such as groceries, utilities, and childcare, which can quickly accumulate and become burdensome.
However, with the correct approach and help, you can recover control of your finances and begin paying down that debt.
Regain Control Of Your Finances With Mediator Law Group
Living with heavy credit card debt is not a good way to live, especially in today’s challenging economy. The ongoing worry of high interest rates, growing balances, and the battle to make ends meet can drain you psychologically and emotionally. But it does not have to be this way. There is a way out; debt settlement could be the key to improving your financial circumstances.
Debt settlement allows you to minimize debt by negotiating with creditors to pay less than the entire amount. This can give you quick relief while avoiding bankruptcy, which typically has long-term financial ramifications. Working with a professional team like Mediator Law Group allows you to receive experienced counsel throughout the debt settlement procedure. We specialize in assisting individuals with their credit card debt and finding realistic, long-term solutions that get them back on track.
You don’t have to negotiate the intricate world of debt settlement alone; Mediator Law Group has the experience. They’ll negotiate on your behalf and give you the resources and assistance you need to reclaim your financial independence. Don’t let credit card debt control your life; take action immediately to learn how debt settlement can help you regain your financial future.
